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The Federal Reserve: An Astounding Exposure 1934 Page 1 of 23 



On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of 

Governors of the Federal Reserve Bank system, The Comptroller of the Currency and the Secretary of 

United States Treasury for numerous criminal acts, including but not limited to, CONSPIRACY, 

FRAUD, UNLAWFUL CONVERSION, AND TREASON 

The petition for Articles of Impeachment was thereafter referred to the Judiciary Committee and has 

YET TO BE ACTED ON. 

So, this ELECTRONIC BOOKLET should be reprinted, reposted, 

set up on web pages and circulated far and wide. 



Congressman McFadden 
on the Federal Reserve Corporation 

Remarks in Congress, 1934 
AN ASTOUNDING EXPOSURE 

i 

Reprinted by permission 1978 Arizona Caucus Club 

i 

Congressman McFadden f s Speech 
On the Federal Reserve Corporation 

Quotations from several speeches made on the Floor of the House of Representatives by the Honorable 
Louis T. McFadden of Pennsylvania. Mr. McFadden, due to his having served as Chairman of the 
Banking and Currency Committee for more than 1 years, was the best posted man on these matters in 
America and was in a position to speak with authority of the vast ramifications of this gigantic private 
credit monopoly. As Representative of a State which was among the first to declare its freedom from 
foreign money tyrants it is fitting that Pennsylvania, the cradle of liberty, be again given the credit for 
producing a son that was not afraid to hurl defiance in the face of the money-bund. Whereas Mr. 
McFadden was elected to the high office on both the Democratic and Republican tickets, there can be no 
accusation of partisanship lodged against him. Because these speeches are set out in full in the 
Congressional Record, they carry weight that no amount of condemnation on the part of private 
individuals could hope to carry. 

The Federal Reserve-A Corrupt Institution 

"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I 
refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed 
has cheated the Government of these United States and the people of the United States out of enough 
money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to 
pay the National debt several times over. 

"This evil institution has impoverished and ruined the people of these United States, has bankrupted 
itself, and has practically bankrupted our Government. It has done this through the defects of the law 
under which it operates, through the maladministration of that law by the Fed and through the corrupt 
practices of the moneyed vultures who control it. 



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"Some people who think that the Federal Reserve Banks United States Government institutions. They 
are private monopolies which prey upon the people of these United States for the benefit of themselves 
and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory 
money lender. In that dark crew of financial pirates there are those who would cut a man's throat to get a 
dollar out of his pocket; there are those who send money into states to buy votes to control our 
legislatures; there are those who maintain International propaganda for the purpose of deceiving us into 
granting of new concessions which will permit them to cover up their past misdeeds and set again in 
motion their gigantic train of crime. 

"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the 
bankers who came here from Europe and repaid us our hospitality by undermining our American 
institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. 
They created a reign of terror in Russia with our money in order to help that war along. They instigated 
the separate peace between Germany and Russia, and thus drove a wedge between the allies in World 
War. They financed Trotsky's passage from New York to Russia so that he might assist in the 
destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a 
large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that 
through him Russian homes might be thoroughly broken up and Russian children flung far and wide 
from their natural protectors. They have since begun breaking up of American homes and the dispersal 
of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking 
and currency affairs in this Country, and I do not speak with any. 

"In 1912 the National Monetary Association, under the chairmanship of the late Senator Nelson W. 
Aldrich, made a report and presented a vicious bill called the National Reserve Association bill. This bill 
is usually spoken of as the Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the tool, if 
not the accomplice, of the European bankers who for nearly twenty years had been scheming to set up a 
central bank in this Country and who in 1912 has spent and were continuing to spend vast sums of 
money to accomplish their purpose. 

"We were opposed to the Aldrich plan for a central bank. The men who rule the Democratic Party then 
promised the people that if they were returned to power there would be no central bank established here 
while they held the reigns of government. Thirteen months later that promise was broken, and the 
Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel 
House, established here in our free Country the worm-eaten monarchical institution of the "King's Bank" 
to control us from the top downward, and from the cradle to the grave. 

"The Federal Reserve Bank destroyed our old and characteristic way of doing business. It discriminated 
against our 1-name commercial paper, the finest in the world, and it set up the antiquated 2-name paper, 
which is the present curse of this Country and which wrecked every country which has ever given it 
scope; it fastened down upon the Country the very tyranny from which the framers of the Constitution 
sough to save us. 

PRESIDENT JACKSON'S TIME 

"One of the greatest battles for the preservation of this Republic was fought out here in Jackson's time; 
when the second Bank of the United States, founded on the same false principles of those which are here 
exemplified in the Fed was hurled out of existence. After that, in 1837, the Country was warned against 
the dangers that might ensue if the predatory interests after being cast out should come back in disguise 
and unite themselves to the Executive and through him acquire control of the Government. That is what 
the predatory interests did when they came back in the livery of hypocrisy and under false pretenses 



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obtained the passage of the Fed. 

"The danger that the Country was warned against came upon us and is shown in the long train of horrors 
attendant upon the affairs of the traitorous and dishonest Fed. Look around you when you leave this 
Chamber and you will see evidences of it in all sides. This is an era of misery and for the conditions that 
caused that misery, the Fed are fully liable. This is an era of financed crime and in the financing of crime 
the Fed does not play the part of a disinterested spectator. 

"It has been said that the draughts man who was employed to write the text of the Aldrich bill because 
that had been drawn up by lawyers, by acceptance bankers of European origin in New York. It was a 
copy, in general a translation of the statues of the Reichsbank and other European central banks. One- 
half million dollars was spent on the part of the propaganda organized by these bankers for the purpose 
of misleading public opinion and giving Congress the impression that there was an overwhelming 
popular demand for it and the kind of currency that goes with it, namely, an asset currency based on 
human debts and obligations. Dr. H. Parker Willis had been employed by Wall Street and propagandists, 
and when the Aldrich measure failed- he obtained employment with Carter Glass, to assist in drawing 
the banking bill for the Wilson administration. He appropriated the text of the Aldrich bill. There is no 
secret about it. The test of the Federal Reserve Act was tainted from the first. 

"A few days before the bill came to a vote, Senator Henry Cabot Lodge, of Massachusetts, wrote to 
Senator John W. Weeks as follows: 



New York City, 
December 17, 1913 
'"My Dear Senator Weeks: 

"'Throughout my public life I have supported all measures designed to take the 
Government out of the banking business. This bill puts the Government into the banking 
business as never before in our history. "'The powers vested in the Federal Reserve 
Board seen to me highly dangerous especially where there is political control of the 
Board. I should be sorry to hold stock in a bank subject to such dominations. The bill as 
it stands seems to me to open the way to a vast inflation of the currency. '"I had hoped to 
support this bill, but I cannot vote for it cause it seems to me to contain features and to 
rest upon principles in the highest degree menacing to our prosperity, to stability in 
business, and to the general welfare of the people of the United States. 

Very Truly Yours, 
Henry Cabot Lodge. '" 



"In eighteen years that have passed since Senator Lodge wrote that letter of warning all of his 
predictions have come true. The Government is in the banking business as never before. Against its will 
it has been made the backer of horse thieves and card sharps, bootlegger's smugglers, speculators, and 
swindlers in all parts of the world. Through the Fed the riffraff of every country is operating on the 
public credit of the United States Government. 

THE GREAT DEPRESSION 

"Meanwhile and on account of it, we ourselves are in the midst of the greatest depression we have ever 
known. From the Atlantic to the Pacific, our Country has been ravaged and laid waste by the evil 



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practices of the Fed and the interests which control them. At no time in our history, has the general 
welfare of the people been at a lower level or the minds of the people so full of despair. 

"Recently in one of our States, 60,000 dwelling houses and farms were brought under the hammer in a 
single day. 71,000 houses and farms in Oakland County, Michigan, were sold and their erstwhile owners 
dispossessed. The people who have thus been driven out are the wastage of the Fed. They are the victims 
of the Fed. Their children are the new slaves of the auction blocks in the revival of the institution of 
human slavery. 

The Scheme of the Fed 

"In 1913, before the Senate Banking and Currency Committee, Mr. Alexander Lassen made the 
following statement: "The whole scheme of the Fed with its commercial paper is an impractical, 
cumbersome machinery- is simply a cover to secure the privilege of issuing money, and to evade 
payment of as much tax upon circulation as possible and then control the issue and maintain, instead of 
reducing interest rates. It will prove to the advantage of the few and the detriment of the people. It will 
mean continued shortage of actual money and further extension of credits, for when there is a shortage 
of money people have to borrow to their cost.' "A few days before the Fed passed, Senator Root 
denounced the Fed as an outrage on our liberties. He predicted: 'Long before we wake up from our 
dream of prosperity through an inflated currency, our gold- which alone could have kept us from 
catastrophe- will have vanished and no rate of interest will tempt it to return.' 

"If ever a prophecy came true, that one did. 

"The Fed became law the day before Christmas Eve, in the year 1913, and shortly afterwards, the 
German International bankers, Kuhn, Loeb and Co. sent one of their partners here to run it. 

"The Fed Note is essentially unsound. It is the worst currency and the most dangerous that this Country 
has ever known. When the proponents of the act saw that the Democratic doctrine would not permit 
them to let the proposed banks issue the new currency as bank notes, they should have stopped at that. 
They should not have foisted that kind of currency, namely, an asset currency, on the United States 
Government. They should not have made the Government [liable on the private] debts of individuals 
and corporations, and, least of all, on the private debts of foreigners. "As Kemerer says: 'The Fed Notes, 
therefore, in form, have some of the qualities of Government paper money, but in substance, are almost 
a pure asset currency possessing a Government guarantee against which contingency the Government 
has made no provision whatever.' 

"Hon. L.J.Hill, a former member of the House, said, and truly: "They are obligations of the Government 
for which the United States received nothing and for the payment of which at any time, it assumes the 
responsibility: looking to the Fed to recoup itself 

"If this United States is to redeem the Fed Notes, when the General Public finds it costs to deliver this 
paper to the Fed, and if the Government has made no provisions for redeeming them, the first element of 
unsoundness is not far to seek. 

"Before the Banking and Currency Committee, when the bill was under discussion Mr. Crozier of 
Cincinnati said: 'The imperial power of elasticity of the public currency is wielded exclusively by the 
central corporations owned by the banks. This is a life and death power over all local banks and all 
business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By 
making money artificially scarce, interest rates throughout the Country can be arbitrarily raised and the 



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bank tax on all business and cost of living increased for the profit of the banks owning these regional 
central banks, and without the slightest benefit to the people. The 12 Corporations together cover y and 
monopolize and use for private gain- every dollar of the public currency and all public revenue of the 
United States. Not a dollar can be put into circulation among the people by their Government, without 
the consent of and on terms fixed by these 12 private money trusts.' 

"In defiance of this and all other warnings, the proponents of the Fed created the 12 private credit 
corporations and gave them an absolute monopoly of the currency of these United States- not of the Fed 
Notes alone- but of all other currency! The Fed Act providing ways and means by which the gold and 
general currency in the hands of the American people could be obtained by the Fed in exchange for Fed 
Notes- which are not money- but mere promises to pay. 

"Since the evil day when this was done, the initial monopoly has been extended by vicious amendments 
to the Fed and by the unlawful and treasonable practices of the Fed. 

Money for the Scottish Distillers 

"Mr. Chairman, if a Scottish distiller wishes to send a cargo of Scotch whiskey to these United States, he 
can draw his bill against the purchasing bootlegger in dollars and after the bootlegger has accepted it by 
writing his name across the face of it, the Scotch distiller can send that bill to the nefarious open 
discount market in New York City where the Fed will buy it and use it as collateral for a new issue of 
Fed Notes. Thus the Government of these United States pay the Scotch distiller for the whiskey before it 
is shipped, and if it is lost on the way, or if the Coast Guard seizes it and destroys it, the Fed simply 
write off the loss and the government never recovers the money that was paid to the Scotch distiller. 

"While we are attempting to enforce prohibition here, the Fed are in the distillery business in Europe and 
paying bootlegger bills with public credit of these United States. "Mr. Chairman, by the same process, 
they compel our Government to pay the German brewer for his beer. Why should the Fed be permitted 
to finance the brewing industry in Germany either in this way or as they do by compelling small and 
fearful United States Banks to take stock in the Isenbeck Brewery and in the German Bank for brewing 
industries? "Mr. Chairman, if Dynamit Nobel of Germany, wishes to sell dynamite in Japan to use in 
Manchuria or elsewhere, it can drew its bill against the Japanese customers in dollars and send that bill 
to the nefarious open discount market in New York City where the Fed will buy it and use it as collateral 
for a new issue of Fed Notes- while at the same time the Fed will be helping Dynamit Nobel by stuffing 
its stock into the United States banking system. 

"Why should we send our representatives to the disarmament conference at Geneva- while the Fed is 
making our Government pay Japanese debts to German Munitions makers? 

"Mr. Chairman, if a German wishes to raise a crop of beans and sell them to a Japanese customer, he can 
draw a bill against his prospective Japanese customer in dollars and have it purchased by the Fed and get 
the money out of this Country at the expense of the American people before he has even planted the 
beans in the ground. "Mr. Chairman, if a German in Germany wishes to export goods to South America, 
or any other Country, he can draw his bill against his customers and send it to these United States and 
get the money out of this Country before he ships, or even manufactures the goods. 

"Mr. Chairman, why should the currency of these United States be issued on the strength of German 
Beer? Why should it be issued on the crop of unplanted beans to be grown in Chili for Japanese 
consumption? Why should these United States be compelled to issue many billions of dollars every year 
to pay the debts of one foreigner to another foreigner? "Was it for this that our National Bank depositors 



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had their money taken out of our banks and shipped abroad? Was it for this that they had to lose it? Why 
should the public credit of these United States and likewise money belonging to our National Bank 
depositors be used to support foreign brewers, narcotic drug vendors, whiskey distillers, wig makes, 
human hair merchants, Chilean bean growers, to finance the munition factories of Germany and Soviet 
Russia? 

THE UNITED STATES HAS BEEN RANSACKED 

"The United States has been ransacked and pillaged. Our structures have been gutted and only the walls 
are left standing. While being perpetrated, everything the world would rake up to sell us was brought in 
here at our expense by the Fed until our markets were swamped with unneeded and unwanted imported 
goods priced far above their value and make to equal the dollar volume of our honest exports, and to kill 
or reduce our favorite balance of trade. As Agents of the foreign central banks the Fed try by every 
means in their power to reduce our favorable balance of trade. They act for their foreign principal and 
they accept fees from foreigners for acting against the best interests of these United States. Naturally 
there has been great competition among among foreigners for the favors of the Fed. 

"What we need to do is to send the reserves of our National Banks home to the people who earned and 
produced them and who still own them and to the banks which were compelled to surrender them to 
predatory interests. 

"Mr. Chairman, there is nothing like the Fed pool of confiscated bank deposits in the world. It is a public 
trough of American wealth in which the foreigners claim rights, equal to or greater than Americans. The 
Fed are the agents of the foreign central banks. They use our bank depositors' money for the benefit of 
their foreign principals. They barter the public credit of the United States Government and hire it our to 
foreigners at a profit to themselves. 

"All this is done at the expense of the United States Government, and at a sickening loss to the 
American people. Only our great wealth enabled us to stand the drain of it as long as we did. 

"We need to destroy the Fed wherein our national reserves are impounded for the benefit of the 
foreigners. "We need to save America for Americans. 

SPURIOUS SECURITIES 

"Mr. Chairman, when you hold a $10.00 Fed Note in your hand, you are holding apiece of paper which 
sooner or later is going to cost the United States Government $10.00 in gold (unless the Government is 
obliged to go off the gold standard). It is based on limburger cheese (reported to be in foreign 
warehouses) or in cans purported to contain peas (but may contain salt water instead), or horse meat, 
illicit drugs, bootleggers fancies, rags and bones from Soviet Russia (of which these United States 
imported over a million dollars worth last year), on wines whiskey, natural gas, goat and dog fur, garlic 
on the string, and Bombay ducks. 

"If you like to have paper money- which is secured by such commodities- you have it in Fed Note. If 
you desire to obtain the thing of value upon which this paper currency is based, that is, the limburger 
cheese, the whiskey, the illicit drugs, or any of the other staples- you will have a very hard time finding 
them. 

"Many of these worshipful commodities are in foreign Countries. Are you going to Germany to inspect 
her warehouses to see if the specified things of value are there? I think more, I do not think that you 



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would find them there if you did go. 

"On April 27, 1932, the Fed outfit sent $750,000 belonging to American bank depositors in gold to 
Germany. A week later another $300,000 in gold was shipped to Germany. About the middle of May 
$12,000,000 in gold was shipped to Germany by the Fed. Almost every week there is a shipment of gold 
to Germany. These shipments are not made for profit on the exchange since the German marks are blow 
parity with the dollar. 

"Mr. Chairman, I believe that the National Bank depositors of these United States have a right to know 
what the Fed are doing with their money. There are millions of National Bank depositors in the Country 
who do not know that a percentage of every dollar they deposit in a Member Bank of the Fed goes 
automatically to American Agents of the foreign banks and that all their deposits can be paid away to 
foreigners without their knowledge or consent by the crooked machinery of the Fed and the questionable 
practices of the Fed. 

[Ed. Note- Problem with next paragraph in original] "Mr. Chairman, the American people should be told 
the truth by their servants in office. In 1930, we had over a half billion dollars outstanding daily to 
finance foreign goods stored in or shipped between several billion dollars. What goods are these on 
which the Fed yearly pledge several billions of dollars. In its yearly total, this item amounts to several 
billions of dollars of the public credit of these United States? 

"What goods are those which are hidden in European and Asiatic stores have not been seen by any 
officer of our Government but which are being financed on the public credit of the United States 
Government? What goods are those upon which the 17 United States Government is being obligated by 
the Fed to issue Fed Notes to the extent of several billions of dollars a year? 

The Bankers' Acceptance Racket 

"The Fed have been International Banks from the beginning, with these United States as their enforced 
banker and supplier of currency. But it is none the less extraordinary to see these these twelve private 
credit monopolies, buying the debts of foreigners against foreigners, in all parts of the world and asking 
the Government of these United States for new issues of Fed notes in exchange for them. "The 
magnitude of the acceptance racket as it has been developed by the Fed, their foreign correspondents, 
and the predatory European born bankers, who set up the Fed here and taught your own, by and of 
pirates, how to loot the people: I say the magnitude of this racket is estimated to be in the neighborhood 
of 9,000,000,000 per year. In the past ten years it is said to have amounted to $90,000,000,000.00. In my 
opinion it has amounted to several times that much, coupled to this you have to the extent of billions of 
dollars, the gambling in the United States securities, which takes place in the same open discount 
market- a gambling on which the Fed is now spending $100,000,000.00 per week. 

"Fed Notes are taken from the U.S. Government in unlimited quantities. Is is strange that the burden of 
supplying these immense sums of money to the gambling fraternity has at last proved too heavy for the 
American people to endure? Would it not be a national [calamity to] again bind down this burden on the 
backs of the American people and by means of a long rawhide whip of the credit masters, compel them 
to enter another seventeen years of slavery? 

"They are trying to do that now. They are trying to take $100,000,000.00 of the public credit of the 
United States every week, in addition to all their other seizures and they are sending that money to the 
nefarious open market in a desperate gamble to reestablish their graft as a going concern. 



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"They are putting the United States Government in debt to the extent of $100,000,000 a week, and with 
the money they are buying our Government securities for themselves and their foreign principals. Our 
people are disgusted with the experiences of the Fed. The Fed is not producing a loaf of bread, a yard of 
cloth, a bushel of corn, or a pile of cordwood by its check-kiting operations in the money market. 

"Mr. Speaker, on the 13th of January of this year I addressed the House on the subject of the 
Reconstruction Finance Corporation. In the course of my remarks I made the following statement: In 
1928 the member banks of the Fed borrowed $60,598,690,000. from the Fed on their fifteen-day 
promissory notes. Think of it. Sixty billion dollars payable on demand in gold in the course of one single 
year. The actual amount of such obligations called for six times as much monetary gold as there is in the 
world. Such transactions represent a grant in the course of one single years of about $7,000,000 to every 
member of the Fed. 

"Is it any wonder that American labor which ultimately pays the cost of all banking operations of this 
Country has at last proved unequal to the task of supplying this huge total of cash and credit for the 
benefit of the stock market manipulators and foreign swindlers? "In 1933 the Fed presented the 
staggering amount of $60,598,690,000 to its member banks at the expense of the wage earners and tax 
payers of these United States. In 1929, the year of the stock market crash, the Fed advanced 
$58,000,000,000 to member banks. 

"In 1930 while the speculating banks were getting out of the stock market at the expense of the general 
public, the Fed advanced them $13,022,782,000. This shows that when the banks were gambling on the 
public credit of these United States as represented by the Fed currency they were subsidized to any 
amount they required by the Fed. When the swindle began to fall, the bankers knew it in advance and 
withdrew from the market. They got out with whole skins- and left the people of these United States to 
pay the piper. "My friend from Kansas, Mr. McGugin, has stated that he thought the Fed lent money on 
rediscounting. So they do, but they lend comparatively little that way. The real discounting that they do 
has been called a mere penny in the slot business. It is too slow for genuine high flyers. They discourage 
it. They prefer to subsidize their favorite banks by making them $60,000,000,000 advances and they 
prefer to acquire assistance in the notorious open discount market in New York, where they can use it to 
control the price of stocks and bonds on the exchanges. 

"For every dollar they advanced on discounts in 1928, they lent $33.00 to their favorite banks for whom 
they do a business of several billion dollars income tax on their profits to these United States. 

The John Law Swindle 

"This is the John Law swindle over again. The theft of Teapot Dome was trifling compared to it. What 
King ever robbed his subject to such an extent as the Fed has robbed us? Is it any wonder that there have 
been lately ninety cases of starvation in one of the New York hospitals? Is there any wonder that the 
children are being abandoned? 

"The government and the people of these United States have been swindled by swindlers deluxe to 
whom the acquisition of American or a parcel of Fed Notes presented no more difficulty than the 
drawing up of a worthless acceptance in a Country not subject to the laws of these United States, by 
sharpers not subject to the jurisdiction of these United States, sharpers with strong banking "fence" on 
this side of the water, a "fence" acting as a receiver of a worthless paper coming from abroad, endorsing 
it and getting the currency out of the Fed for it as quickly as possible exchanging that currency for gold 
and in turn transmitting the gold to its foreign confederates. 



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Ivar Kreuger, the Match King! 

"Such were the exploits of Ivar Krueger, Mr. Hoover's friend, and his rotten Wall Street bakers. Every 
dollar of the billions Kreuger and his gang drew out of this Country on acceptances was drawn from the 
government and the people of the United States through the Fed. The credit of the United States 
Government was peddled to him by the Fed for their own private gain. That is what the Fed has been 
doing for many years. 

"They have been peddling the credit of this Government and the [signature of this] Government to the 
swindlers and speculators of all nations. That is what happens when a Country forsakes its Constitution 
and gives its sovereignty over the public currency to private interests. Give them the flag and they will 
sell it. 

"The nature of Kreuger's organized swindle and the bankrupt condition of Kreuger' s combine was 
known here last June when Hoover sought to exempt Krueger's loan to Germany of $125,000,000 from 
the operation of the Hoover Moratorium. The bankrupt condition of Krueger's swindle was known her 
last summer when $30,000,000 was taken from the American taxpayers by certain bankers in New York 
for the ostensible purpose of permitting Krueger to make a loan to Colombia. Colombia never saw that 
money. 

"The nature of Krueger's swindle was known here in January when he visited his friend, Mr. Hoover, at 
the White House. It was known here in March before he went to Paris and committed suicide. 

"Mr. Chairman, I think the people of the United States are entitled to know how many billions of dollars 
were placed at the disposal of Krueger and his gigantic combine by the Fed, and to know how much of 
our Government currency was issued and lost in the financing of that great swindle in the years during 
which the Fed took care of Krueger's requirements. 

"A few days ago, the President of the United States with a white face and shaking hands, went before the 
Senate of behalf of the moneyed interests and asked the Senate to levy a tax on the people so that 
foreigners might know that these United States would pay its debt to them. 

"Most Americans thought it was the other way around. What does these United States owe foreigners? 
When and by whom was the debt incurred? It was incurred by the Fed, when they peddled the signature 
of the Government to foreigners- for a Price. It is what the United States Government has to pay to 
redeem the obligations of the Fed. 

Thieves Go Scot Free 

"Are you going to let these thieves get off scot free? Is there one law for the looter who drives up to the 
door of the United States Treasury in his limousine and another for the United States Veterans who are 
sleeping on the floor of a dilapidated house on the outskirts of Washington? 

"The Baltimore and Ohio Railroad is here asking for a large loan from the people, and the wage earners 
and the taxpayers of these United States. It is begging for a handout from the Government. It is standing, 
cap in hand, at the door of the R.F.C. where all the jackals have gathered to the feast. It is asking for 
money that was raised from the people by taxation and wants this money of the poor for the benefit of 
Kuhn, Loeb and Co., the German International Bankers. 

"Is there one law for the Baltimore and Ohio Railroad and another for the hungry veterans it threw off its 



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freight cars the other day? Is there one law for sleek and prosperous swindlers who call themselves 
bankers and another law for the soldiers who defended the flag? "The R.F.C. is taking over these 
worthless securities from the Investment Trusts with United States Treasury money at the expense of the 
American taxpayer and the wage earner. 

"It will take twenty years to redeem our Government. Twenty years of penal servitude to pay off the 
gambling debts of the traitorous Fed and to vast flood of American wages and savings, bank deposits, 
and the United States Government credit which the Fed exported out of this country to their foreign 
principals. 

"The Fed lately conducted an anti-hoarding campaign here. They they took that extra money which they 
had persuaded the American people to put into the banks- they sent it to Europe- along with the rest. In 
the last several months, they have sent $1,300,000,000 in gold to their foreign employers, their foreign 
masters, and every dollar of that gold belonged to the people of these United States and was unlawfully 
taken from them. 

Fiat Money 

"Mr. Chairman, within the limits of the time allowed me, I cannot enter into a particularized discussion 
of the Fed. I have singled out the Fed currency for a few remarks because there has lately been some talk 
here of "fiat money". What kind of money is being pumped into the open discount market and through it 
into foreign channels and stock exchanges? Mr. Mills of the Treasury has spoken here of his horror of 
the printing presses and his horror of dishonest money. He has no horror of dishonest money. If he had, 
he would be no party to the present gambling of the Fed in the nefarious open discount market of New 
York, a market in which the sellers are represented by 10 discount corporations owned and organized by 
the very banks which own and control the Fed. 

"Fiat money, indeed! 

"What Mr. Mills is fighting for is the preservation, whole and entire, of the banker's monopoly of all the 
currency of the United States Government. 

"Mr. Chairman, last December, I introduced a resolution here asking for an examination and an audit of 
the Fed and all related matters. If the House sees fit to make such an investigation, the people of these 
United States will obtain information of great value. This is a Government of the people, by the people, 
for the people. Consequently, nothing should be concealed from the people. The man who deceives the 
people is a traitor to these United States. 

"The man who knows or suspects that a crime has been committed and who conceals and covers up that 
crime is an accessory to it. Mr. Speaker, it is a monstrous thing for this great nation of people to have its 
destinies presided over by a traitorous government board acting in secret concert with international 
usurers. 

"Every effort has been made by the Fed to conceal its powers- but the truth is- the Fed has usurped the 
Government. It controls everything here and it controls all of our foreign relations. It makes and breaks 
governments at will. 

"No man and no body of men is more entrenched in power than the arrogant credit monopoly which 
operated the Fed. What National Government has permitted the Fed to steal from the people should now 
be restored to the people. The people have a valid claim against the Fed. If that claim is enforced the 



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Americans will not need to stand in the bread line, or to suffer and die of starvation in the streets. 
Women will be saved, families will be kept together, and American children will not be dispersed and 
abandoned. 

"Here is a Fed Note. Immense numbers of the notes are now held abroad. I am told that they amount to 
upwards of a billion dollars. They constitute a claim against our Government and likewise a claim 
against our peoples' money to the extent of $1,300,000,000 which has within the last few months been 
shipped abroad to redeem Fed Notes and to pay other gambling debts of the traitorous Fed. The greater 
part of our money stock has been shipped to other lands. 

"Why should we promise to pay the debts of foreigners to foreigners? Why should the Fed be permitted 
to finance our competitors in all parts of the world? Do you know why the tariff was raised? It was 
raised to shut out the flood of Fed Goods pouring in here from every quarter of the globe- cheap goods, 
produced by cheaply paid foreign labor, on unlimited supplies of money and credit sent out of this 
Country by the dishonest and unscrupulous Fed. 

"The Fed are spending $100,000,000 a week buying government securities in the open market and are 
making a great bid for foreign business. They are trying to make rates so attractive that the human hair 
merchants and the distillers and other business entities in foreign land will come her and hire more of the 
public credit of the United States Government to pay the Fed outfit for getting it for them. 

World Enslavement Planned 

"Mr. Chairman, when the Fed was passed, the people of these United States did not perceive that a 
world system was being set up here which would make the savings of the American school teacher 
available to a narcotic-drug vendor in Acapulco. They did not perceive that these United States was to 
be lowered to the position of a coolie country which has nothing but raw material and heart, that Russia 
was destined to supply the man power and that this country was to supply the financial power to an 
"international superstate". A superstate controlled by international bankers, and international 
industrialists acting together to enslave the world for their own pleasure? 

"The people of these United States are being greatly wronged. They have been driven from their 
employments. They have been dispossessed from their homes. They have been evicted from their rented 
quarters. They have lost their children. They have been left to suffer and die for lack of shelter, food, 
clothing and medicine. 

"The wealth of these United States and the working capital have been taken away from them and has 
either been locked in the vaults of certain banks and the great corporations or exported to foreign 
countries for the benefit of the foreign customers of these banks and corporations. So far as the people of 
the United States are concerned, the cupboard is bare. 

"It is true that the warehouses and coal yards and grain elevators are full, but these are padlocked, and 
the great banks and corporations hold the keys. 

"The sack of these United States by the Fed is the greatest crime in history. 

"Mr. Chairman, a serious situation confronts the House of Representatives today. We are trustees of the 
people and the rights of the people are being taken away from them. Through the Fed the people are 
losing the rights guaranteed to them by the Constitution. Their property has been taken from them 
without due process of law. Mr. Chairman, common decency requires us to examine the public accounts 



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The Federal Reserve: An Astounding Exposure 1934 Page 12 of 23 

of the Government and see what crimes against the public welfare have been committed. 

"What is needed here is a return to the Constitution of these United States. 

"The old struggle that was fought out here in Jackson's time must be fought our over again. The 
independent United States Treasury should be reestablished and the Government should keep its own 
money under lock and key in the building the people provided for that purpose. 

"Asset currency, the devise of the swindler, should be done away with. The Fed should be abolished and 
the State boundaries should be respected. Bank reserves should be kept within the boundaries of the 
States whose people own them, and this reserve money of the people should be protected so that the 
International Bankers and acceptance bankers and discount dealers cannot draw it away from them. 

"The Fed should be repealed, and the Fed Banks, having violated their charters, should be liquidated 
immediately. Faithless Government officials who have violated their oaths of office should be 
impeached and brought to trial. 

"Unless this is done by us, I predict, that the American people, outraged, pillaged, insulted and betrayed 
as they are in their own land, will rise in their wrath, and will sweep the money changers out of the 
temple. 

"Mr. Chairman, the United States is bankrupt: It has been bankrupted by the corrupt and dishonest Fed. 
It has repudiated its debts to its own citizens. Its chief foreign creditor is Great Britain, and a British 
bailiff has been at the White House and the British Agents are in the United States Treasury making 
inventory arranging terms of liquidations! 

Great Britain, Partner in Blackmail 

"Mr. Chairman, the Fed has offered to collect the British claims in full from the American public by 
trickery and corruption, if Great Britain will help to conceal its crimes. The British are shielding their 
agents, the Fed, because they do not wish that system of robbery to be destroyed here. They wish it to 
continue for their benefit! By means of it, Great Britain has become the financial mistress of the world. 
She has regained the position she occupied before the World War. 

"For several years she has been a silent partner in the business of the Fed. Under threat of blackmail, or 
by their bribery, or by their native treachery to the people of the United States, the officials in charge of 
the Fed unwisely gave Great Britain immense gold loans running into hundreds of millions of dollars. 
They did this against the law! Those gold loans were not single transactions. They gave Great Britain a 
borrowing power in the United States of billions. She squeezed billions out of this Country by means of 
her control of the Fed. 

"As soon as the Hoover Moratorium was announced, Great Britain moved to consolidate her gains. After 
the treacherous signing away of American rights at the 7-power conference at London in July, 1931, 
which put the Fed under the control of the Bank of International Settlements, Great Britain began to 
tighten the hangman's noose around the neck of the United States. 

"She abandoned the gold standard and embarked on a campaign of buying up the claims of foreigners 
against the Fed in all parts of the world. She has now sent her bailiff, Ramsey MacDonald, here to get 
her war debt to this country canceled. But she has a club in her hands! She has title to the gambling 
debts which the corrupt and dishonest Fed incurred abroad. 



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"Ramsey MacDonald, the labor party deserter, has come here to compel the President to sign on the 
dotted line, and that is what Roosevelt is about to do! Roosevelt will endeavor to conceal the nature of 
his action from the American people. But he will obey the International Bankers and transfer the war 
debt that Great Britain should pay to the American people, to the shoulders of the American taxpayers. 

"Mr. Chairman, the bank holiday in the several States was brought about by the corrupt and dishonest 
Fed. These institutions manipulated money and credit, and caused the States to order bank holidays. 

"These holidays were frame-ups! "They were dress rehearsals for the national bank holiday which 
Franklin D. Roosevelt promised Sir Ramsey MacDonald that he would declare. 

"There was no national emergency here when Franklin D. Roosevelt took office excepting the 
bankruptcy of the Fed- a bankruptcy which has been going on under cover for several years and which 
has been concealed from the people so that the people would continue to permit their bank deposits and 
their bank reserves and their gold and the funds of the United States Treasury to be impounded in these 
bankrupt institutions. 

"Under cover, the predatory International Bankers have been stealthily transferring the burden of the Fed 
debts to the people's Treasury and to the people themselves. They the farms and the homes of the United 
States to pay for their thievery! That is the only national emergency that there has been here since the 
depression began. 

"The week before the bank holiday ws declared in New York State, the deposits in the New York 
savings banks were greater than the withdrawals. There were no runs on New York Banks. There was no 
need of a bank holiday in New York, or of a national holiday. 

Roosevelt and the International Bankers 

"Roosevelt did what the International Bankers ordered him to do! 

"Do not deceive yourself, Mr. Chairman, or permit yourself to be deceived by others into the belief that 
Roosevelt's dictatorship is in any way intended to benefit the people of the United States: he is preparing 
to sign on the dotted line! "He is preparing to cancel the war debts by fraud! 

"He is preparing to internationalize this Country and to destroy our Constitution itself in order to keep 
the Fed intact as a money institution for foreigners. "Mr. Chairman, I see no reason why citizens of the 
United States should be terrorized into surrendering their property to the International Bankers who own 
and control the Fed. The statement that gold would be taken from its lawful owners if they did not 
voluntarily surrender it, to private interests, show that there is an anarchist in our Government. 

"The statement that it is necessary for the people to give their gold- the only real money- to the banks in 
order to protect the currency, is a statement of calculated dishonesty! 

"By his unlawful usurpation of power on the night of March 5, 1933, and by his proclamation, which in 
my opinion was in violation of the Constitution of the United States, Roosevelt divorced the currency of 
the United States from gold, and the United States currency is no longer protected by gold. It is therefore 
sheer dishonesty to say that the people's gold is needed to protect the currency. 

"Roosevelt ordered the people to give their gold to private interests- that is, to banks, and he took control 
of the banks so that all the gold and gold values in them, or given into them, might be handed over to the 



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predatory International Bankers who own and control the Fed. 

"Roosevelt cast his lot with the usurers. "He agreed to save the corrupt and dishonest at the expense of 
the people of the United States. 

"He took advantage of the people's confusion and weariness and spread the dragnet over the United 
States to capture everything of value that was left in it. He made a great haul for the International 
Bankers. 

"The Prime Minister of England came here for money! He came here to collect cash! 

"He came here with Fed Currency and other claims against the Fed which England had bought up in all 
parts of the world. And he has presented them for redemption in gold. 

"Mr. Chairman, I am in favor of compelling the Fed to pay their own debts. I see no reason why the 
general public should be forced to pay the gambling debts of the International Bankers. 

Roosevelt Seizes the Gold 

"By his action in closing the banks of the United States, Roosevelt seized the gold value of forty billions 
or more of bank deposits in the United States banks. Those deposits were deposits of gold values. By his 
action he has rendered them payable to the depositors in paper only, if payable at all, and the paper 
money he proposes to pay out to bank depositors and to the people generally in lieu of their hard earned 
gold values in itself, and being based on nothing into which the people can convert it the said paper 
money is of negligible value altogether. 

"It is the money of slaves, not of free men. If the people of the United States permit it to be imposed 
upon them at the will of their credit masters, the next step in their downward progress will be their 
acceptance of orders on company stores for what they eat and wear. Their case will be similar to that of 
starving coal miners. They, too, will be paid with orders on Company stores for food and clothing, both 
of indifferent quality and be forced to live in Company-owned houses from which they may be evicted 
at the drop of a hat. More of them will be forced into conscript labor camps under supervision. 

"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath to preserve, protect 
and defend the Constitution of the U.S. At midnight on the 5th of March, 1933, he confiscated the 
property of American citizens. He took the currency of the United States standard of value. He 
repudiated the internal debt of the Government to its own citizens. He destroyed the value of the 
American dollar. He released, or endeavored to release, the Fed from their contractual liability to redeem 
Fed currency in gold or lawful money on a parity with gold. He depreciated the value of the national 
currency. 

"The people of the U.S. are now using unredeemable paper slips for money. The Treasury cannot 
redeem that paper in gold or silver. The gold and silver of the Treasury has unlawfully been given to the 
corrupt and dishonest Fed. And the Administration has since had the effrontery to raid the country for 
more gold for the private interests by telling our patriotic citizens that their gold is needed to protect the 
currency. 

"It is not being used to protect the currency! It is being used to protect the corrupt and dishonest Fed. 
"The directors of these institutions have committed criminal offense against the United States 
Government, including the offense of making false entries on their books, and the still more serious 



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offense of unlawfully abstracting funds from the United States Treasury! "Roosevelt's gold raid is 
intended to help them out of the pit they dug for themselves when they gambled away the wealth and 
savings of the American people. 

Dictatorship 

"The International Bankers set up a dictatorship here because they wanted a dictator who would protect 
them. They wanted a dictator who would protect them. They wanted a dictator who would issue a 
proclamation giving the Fed an absolute and unconditional release from their special currency in gold, or 
lawful money of any Fed Bank. 

"Has Roosevelt relieved any other class of debtors in this country from the necessity of paying their 
debts? Has he made a proclamation telling the farmers that they need not pay their mortgages? Has he 
made a proclamation to the effect that mothers of starving children need not pay their milk bills? Has he 
made a proclamation relieving householders from the necessity of paying rent? 

Roosevelt's Two Kinds of Laws 

"Not he! He has issued one kind of proclamation only, and that is a proclamation to relieve international 
bankers and the foreign debtors of the United States Government. 

"Mr. Chairman, the gold in the banks of this country belongs to the American people who have paper 
money contracts for it in the form of national currency. If the Fed cannot keep their contracts with 
United States citizens to redeem their paper money in gold, or lawful money, then the Fed must be taken 
over by the United States Government and their officers must be put on trial. 

"There must be a day of reckoning. If the Fed have looted the Treasury so that the Treasury cannot 
redeem the United States currency for which it is liable in gold, then the Fed must be driven out of the 
Treasury. 

"Mr. Chairman, a gold certificate is a warehouse receipt for gold in the Treasury, and the man who has a 
gold certificate is the actual owner of a corresponding amount of gold stacked in the Treasury subject to 
his order. 

"Now comes Roosevelt who seeks to render the money of the United States worthless by unlawfully 
declaring that it may No Longer be converted into gold at the will of the holder. 

"Roosevelt's next haul for the International Bankers was the reduction in the pay of all Federal 
employees. 

"Next in order are the veterans of all wars, many of whom are aged and inform, and other sick and 
disabled. These men had their lives adjusted for them by acts of Congress determining the amounts of 
the pensions, and, while it is meant that every citizen should sacrifice himself for the good of the United 
States, I see no reason why those poor people, these aged Civil War Veterans and war widows and half- 
starved veterans of the World War, should be compelled to give up their pensions for the financial 
benefit of the International vultures who have looted the Treasury, bankrupted the country and 
traitorously delivered the United States to a foreign foe. 

"There are many ways of raising revenue that are better than that barbaric act of injustice. 



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"Why not collect from the Fed the amount they owe the U.S. Treasury in interest on all the Fed currency 
they have taken from the Government? That would put billions of dollars into the U.S. Treasury. 

"If FDR is as honest as he pretends to be, he will have that done immediately. And in addition, why not 
compel the Fed to disclose their profits and to pay the Government its share? 

"Until this is done, it is rank dishonesty to talk of maintaining the credit of the U.S. Government. "My 
own salary as a member of Congress has been reduced, and while I am willing to give my part of it that 
has been taken away from me to the U.S. Government, I regret that the U.S. has suffered itself to be 
brought so low by the vultures and crooks who are operating the roulette wheels and faro tables in the 
Fed, that is now obliged to throw itself on the mercy of its legislators and charwomen, its clerks, and it 
poor pensioners and to take money out of our pockets to make good the defalcations of the International 
Bankers who were placed in control of the Treasury and given the monopoly of U.S. Currency by the 
misbegotten Fed. "I am well aware that the International Bankers who drive up to the door of the United 
States Treasury in their limousines, look down with scorn upon members of Congress because we work 
for so little, while they draw millions a year. The difference is that we earn, or try to earn, what we get- 
and they steal the greater part of their takings. 

Enemies of the People They Rob 

"I do not like to see vivisections performed on human beings. I do not like to see the American people 
used for experimental purposes by the credit masters of the United States. They predicted among 
themselves that they would be able to produce a condition here in which American citizens would be 
completely humbled and left starving and penniless in the streets. 

"The fact that they made that assertion while they were fomenting their conspiracy against the United 
States that they like to see a human being, especially an American, stumbling from hunger when he 
walks. "Something should be done about it, they say. Five-cent meals, or something! "But FDR will not 
permit the House of Representatives to investigate the condition of the Fed. FDR will not do that. He 
has certain International Bankers to serve. They not look to him as the man Higher Up who will protect 
them from the just wrath of an outraged people. 

"The International Bankers have always hated our pensioners. A man with a small pension is a ward of 
the Government. He is not dependent upon them for a salary or wages. They cannot control him. They 
do not like him. It gave them great pleasure, therefore, to slash the veterans. 

"But FDR will never do anything to embarrass his financial supporters. He will cover up the crimes of 
the Fed. 

"Before he was elected, Mr. Roosevelt advocated a return to the earlier practices of the Fed, thus 
admitting its corruptness. The Democratic platform advocated a change in the personnel of the Fed. 
These were campaign bait. As a prominent Democrat lately remarked to me; "There is no new deal. The 
same old crowd is in control." 

"The claims of foreign creditors of the Fed have no validity in law. The foreign creditors were the 
receivers- and the willing receivers- of stolen goods! They have received through their banking fences 
immense amounts of currency, and that currency was unlawfully taken from the United States Treasury 
by the Fed. 

"England discovered the irregularities of the Fed quite early in its operations and through fear, 



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apparently, the Fed have for years suffered themselves to be blackmailed and dragooning England to 
share in the business of the Fed. "The Fed have unlawfully taken many millions of dollars of the public 
credit of the United States and have given it to foreign sellers on the security of the Debt paper of 
foreign buyers in purely foreign transactions, and when the foreign buyers refused to meet their 
obligations and the Fed saw no honest way of getting the stolen goods back into their possession, they 
decided by control of the executive to make the American people pay their losses! 

Conspiracy of War Debts 

"They likewise entered into a conspiracy to deprive the people of the U.S. of their title to the war debts 
and not being able to do that in the way they intended, they are now engaged in an effort to debase the 
American dollar so that foreign governments will have their debts to this country cut in two, and then by 
means of other vicious underhanded arrangements, they propose to remit the remainder. 

"So far as the U.S. is concerned, the gambling counters have no legal standing. The U.S. Treasury 
cannot be compelled to make good the gambling ventures of the corrupt and dishonest Fed. Still less 
should the bank deposits of the U.S. be used for that purpose. Still less should the national currency have 
been made irredeemable in gold so that the gold which was massed and stored to redeem the currency 
for American citizens may be used to pay the gambling debts of the Fed for England's benefit. "The 
American people should have their gold in their own possession where it cannot be held under secret 
agreement for any foreign control bank, or world bank, or foreign nation. Our own citizens have the 
prior claim to it. The paper [money men] have in their possession deserves redemption far more than 
U.S. currency and credit which was stolen from the U.S. Treasury and bootlegged abroad. 

"Why should the foreigners be made preferred creditors of the bankrupt U.S.? Why should the U.S. be 
treated as bankrupt at all? This Government has immense sums due it from the Fed. The directors of 
these institutions are men of great wealth. Why should the guilty escape the consequences of their 
misdeeds? Why should the people of these U.S. surrender the value of their gold bank deposits to pay 
off the gambling debts of these bankers? Why should Roosevelt promise foreigners that the U.S. will 
play the part of a good neighbor, 'meeting its obligations'? 

"Let the Fed meet their own obligations. 

"Every member of the Fed should be compelled to disgorge, and every acceptance banker and every 
discount corporation which has made illegal profits by means of public credit unlawfully bootlegged out 
of the U.S. Treasury and hired out by the crooks and vultures of the Fed should be compelled to 
disgorge. 

Federal Reserve Pays No Taxes 

"Gambling debts due to foreign receivers of stolen goods should not be paid by sacrificing our title to 
our war debts, the assets of the U.S. Treasury- which belong to all the people of the U.S. and which it is 
our duty to preserve inviolate in the people's treasury. 

"The U.S. Treasury cannot be made liable for them. The Fed currency must be redeemed by the Fed 
banks or else these Fed banks must be liquidated. 

"We know from assertions made here by the Hon. John N. Garner, Vice-President of the U.S. that there 
is a condition in the [United States such] would cause American citizens, if they knew what it was, to 
lose all confidence in their government. 



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"That is a condition that Roosevelt will not have investigated. He has brought with him from Wall 
Street, James Warburg, the son of Paul M. Warburg. Mr. Warburg, alien born, and the son of an alien 
who did not become naturalized here until several years after this Warburg's birth, is a son of a former 
partner of Kuhn, Loeb and Co., a grandson of another partner, a nephew of a former partner, and a 
nephew of a present partner. 

"He holds no office in our Government, but I am told that he is in daily attendance at the Treasury, and 
that he has private quarters there! In other words, Mr. Chairman, Kuhn, Loeb and Company now has 
control and occupy the U.S. Treasury. 

Preferred Treatment for Foreigners 

"The text of the Executive order which seems to place an embargo on shipments of gold permits the 
Secretary of the Treasury, a former director of the corrupt, to issue licenses at his discretion for the 
export of gold coin, or bullion, earmarked or held in trust for a recognized foreign government or 
foreign central bank for international settlement. Now, Mr. Chairman, if gold held in trust for those 
foreign institutions may be sent to them, I see no reason why gold held in trust for American as 
evidenced by their gold certificates and other currency issued by the U.S. Government should not be 
paid to them. "I think that American citizens should be entitled to treatment at least as good as that 
which the person is extending to foreign governments, foreign central banks, and the bank of 
International Settlements. I think a veteran of the world war, with a $20.00 gold certificate, is at least as 
much entitled to receive his own gold for it, as any international banker in the city of New York or 
London. 

"By the terms of this executive order, gold may be exported if it is actually required, for the fulfillment 
of any contract entered into prior to the date of this order by an applicant who, in obedience to the 
executive order of April 5, 1933, has delivered gold coin, gold bullion, or gold certificates. "This means 
that gold may be exported to pay the obligations abroad of the Fed which were incurred prior to the date 
of the order, namely, April 20, 1933. 

"If a European Bank should send 100,000,000 dollars in Fed currency to a bank in this country for 
redemption, that bank could easily ship gold to Europe in exchange for that currency. Such Fed currency 
would represent "contracts" entered into prior to the date of the order. If the Bank of International 
Settlements or any other foreign bank holding any of the present gambling debt paper of the Fed should 
draw a draft for the settlement of such obligation, gold would be shopped to them because the debt 
contract would have been entered into prior to the date of order. 

Crimes and Criminals 



"Mr. Speaker, I rise to a question of constitutional privilege. 

"Whereas, I charge. . .Eugene Meyer, Roy A. Young, Edmund Piatt, Eugene B. Black, Adolph Casper 
Miller, Charles S. Hamlin, George R. James, Andrew W. Mellon, Ogden L. Mills, William H. Woo W. 
Poole, J.F.T. O'Connor, members of the Federal Reserve Board; F. H. Curtis, J.H. Chane, R.L. Austin, 
George De Camp, L.B. Williams, W.W. Hoxton, Oscar Newton, E.M. Stevens, J.S. Wood, J.N. Payton, 
M.L. McClure, C.C. Walsh, Isaac B. Newton, Federal Reserve Agents, jointly and severally, with 
violations of the Constitution and laws of the United States, and whereas I charge them with having 
taken funds from the U.S Treasury which were not appropriated by the Congress of the United States, 
and I charge them with having unlawfully taken over $80,000,000,000 from the U.S. Government in the 



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year 1928, the said unlawful taking consisting of the unlawful creation of claims against the U.S. 
Treasury to the extent of over $80,000,000,000 in the year 1928; and I charge them with similar thefts 
committed in 1929, 1930, 1931, 1932 and 1933, and in years previous to 1928, amounting to billions of 
dollars; and 

"Whereas I charge them, jointly and severally with having unlawfully created claims against the U.S. 
Treasury by unlawfully placing U.S. Government credit in specific amounts to the credit of foreign 
governments and foreign central banks of issue; private interests and commercial and private banks of 
the U.S. and foreign countries, and branches of foreign banks doing business in the U.S., to the extent of 
billions of dollars; and with having made unlawful contracts in the name of the U.S. Government and 
the U.S. Treasury; and with having made false entries on books of account; and 

"Whereas I charge them jointly and severally, with having taken Fed Notes from the U.S. Treasury and 
with having put Fed Notes into circulation without obeying the mandatory provision of the Fed Act 
which requires the Fed Board to fix an interest rate on all issues of Fed Notes supplied to Fed Banks, the 
interest resulting therefrom to be paid by the Fed Banks to the government of the U.S. for the use of the 
Fed Notes, and I charge them of having defrauded the U.S. Government and the people of the U.S. of 
billions of dollars by the commission of this crime, and 

"Whereas I charge them, jointly and severally, with having purchased U.S. Government securities with 
U.S. Government credit unlawfully taken and with having sold the said U.S. Government securities back 
to the people of the U.S. for gold or gold values and with having again purchased U.S. Government 
securities with U.S. Government credit unlawfully taken and with having again sold the said U.S. 
Government security for gold or gold values, and I charge them with having defrauded the U.S. 
Government and the people of the U.S. by this rotary process; and 

"Whereas I charge them, jointly and severally, with having unlawfully negotiated U.S. Government 
securities, upon which the Government liability was extinguished, as collateral security for Fed Notes 
and with having substituted such securities for gold which was being held as collateral security for Fed 
Notes, and with having by the process defrauded the U.S. Government and the people of the U.S., and I 
charge them with the theft of all the gold and currency they obtained by this process; and 

"Whereas I charge them, jointly and severally, with having unlawfully issued Fed currency on false, 
worthless and fictitious acceptances and other circulating evidence of debt, and with having made 
unlawful advances of Fed currency, and with having unlawfully permitted renewals of acceptances and 
renewals of other circulating evidences of debt, and with having permitted acceptance bankers and 
discount dealer corporations and other private bankers to violate the banking laws of the U.S.; and 

"Whereas I charge them, jointly and severally, with having conspired to have evidences of debt to the 
extent of $1,000,000,000 artificially created at the end of February, 1933, and early in March 1933, and 
with having made unlawful issues and advances of Fed currency on the security of said artificially 
created evidences of debt for a sinister purpose, and with having assisted in the execution of said sinister 
purpose; and 

"Whereas I charge them, jointly and severally, with having brought about the repudiation of the currency 
obligations of the Fed Banks to the people of the U.S. and with having conspired to obtain a release for 
the Fed Board and the Fed Banks from their contractual liability to redeem all Fed currency in gold or 
lawful money at the Fed Bank and with having defrauded the holders of Fed currency, and with having 
conspired to have the debts and losses of the Fed Board and the Fed Banks unlawfully transferred to the 
Government and the people of the U.S., and 



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"Whereas I charge them, jointly and severally, with having unlawfully substituted Fed currency and 
other irredeemable paper currency for gold in the hands of the people after the decision to repudiate the 
Fed currency and the national currency was made known to them, and with thus having obtained money 
under false pretenses; and 

"Whereas I charge them, jointly and severally, with having brought about a repudiation of the notes of 
the U.S. in order that the gold value of the said currency might be given to private interests, foreign 
governments, foreign central banks of issues, and the Bank of International Settlements, and the people 
of the U.S. to be left without gold or lawful money and with no currency other that a paper currency 
irredeemable in gold, and I charge them with having done this for the benefit of private interests, foreign 
governments, foreign central banks of issue, and the bank of International Settlements; and 

"Whereas I charge them, jointly and severally, with conniving with the Edge Law banks, and other Edge 
Law institutions, accepting banks, and discount corporations, foreign central banks of issue, foreign 
commercial banks, foreign corporations, and foreign individuals with funds unlawfully taken from the 
U.S. Treasury; and I charge them with having unlawfully permitted and made possible 'new financing' 
for foreigners at the expense of the U.S. Treasury to the extent of billions of dollars and with having 
unlawfully permitted and made possible the bringing into the United States of immense quantities of 
foreign securities, created in foreign countries for export to the U.S. and with having unlawfully 
permitted the said foreign securities to be imported into the U.S. instead of gold, which was lawfully due 
to the U.S. on trade balances and otherwise, and with having lawfully permitted and facilitated the sale 
of the said foreign securities in the U.S., and 

"Whereas I charge them, jointly and severally, with having unlawfully exported U.S. coins and currency 
for a sinister purpose, and with having deprived the people of the U.S. of their lawful medium of 
exchange, and I charge them with having arbitrarily and unlawfully reduced the amount of money and 
currency in circulation in the U.S. to the lowest rate per capita in the history of the Government, so that 
the great mass of the people have been left without a sufficient medium of exchange, and I charge them 
with concealment and evasion in refusing to make known the amount of U.S. money in coins and paper 
currency exported and the amount remaining in the U.S. as a result of which refusal the Congress of the 
U.S. is unable to ascertain where the U.S. coins and issues of currency are at the present time, and what 
amount of U.S. currency is now held abroad; and 

"Whereas I charge them, jointly and severally, with having arbitrarily and unlawfully raised and lowered 
the rates of money and with having arbitrarily increased and diminished the volume of currency in 
circulation for the benefit of private interests at the expense of the Government and the people of the 
U.S. and with having unlawfully manipulated money rates, wages, salaries and property values both real 
and personal, in the U.S. by unlawful operations in the open discount market and by resale and 
repurchase agreements unsanctioned by law, and 

"Whereas I charge them jointly and severally, with having brought about the decline in prices on the 
New York Stock Exchange and other exchanges in October, 1929, by unlawful manipulation of money 
rates and the volume of U.S. money and currency in circulation: by theft of funds from the U.S. 
Treasury by gambling in acceptances and U.S. Government securities; by service rendered to foreign 
and domestic speculators and politicians, and by unlawful sale of U.S. gold reserves abroad, and 

"Whereas the unconstitutional inflation law imbedded in the so-called Farm Relief Act by which the Fed 
Banks are given permission to buy U.S. Government securities to the extent of $3,000,000,000 and to 
drew forth currency from the people's Treasury to the extent of $3,000,000,000 is likely to result in 
connivance on the part of said accused with others in the purchase by the Fed of the U.S. Government 
securities to the extent of $3,000,000,000 with U.S. Government's own credit unlawfully taken, it being 



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obvious that the Fed do no not intend to pay anything of value to the U.S. Government for the said U.S. 
Government securities no provision for payment in gold or lawful money appearing in the so-called 
Farm Relief bill- and the U.S. Government will thus be placed in a position of conferring a gift of 
$3,000,000,000 in the U.S. Government securities on the Fed to enable them to pay more on their bad 
debts to foreign governments, foreign central banks of issue, private interests, and private and 
commercial banks, both foreign and domestic, and the Bank of International Settlements, and 

"Whereas the U.S. Government will thus go into debt to the extent of $3,000,000,000 and will then have 
an additional claim of $3,000,000,000 in currency unlawfully created against it and whereas no private 
interest should be permitted to buy U.S. Government securities with the Government's own credit 
unlawfully taken and whereas currency should not be issued for the benefit of said private interest or any 
interests on U.S. Government securities so acquired, and whereas it has been publicly stated and not 
denied that the inflation amendment of the Farm Relief Act is the matter of benefit which was secured 
by Ramsey MacDonald, the Prime Minister of Great Britain, upon the occasion of his latest visit to the 
U.S. Treasury, and whereas there is grave danger that the accused will employ the provision creating 
U.S. Government securities to the extent of $3,000,000,000 and three millions in currency to be issuable 
thereupon for the benefit of themselves and their foreign principals, and that they will convert the 
currency so obtained to the uses of Great Britain by secret arrangements with the Bank of England of 
which they are the agents, and for which they maintain an account and perform services at the expense 
of the U.S. Treasury, and that they will likewise confer benefits upon the Bank of International 
Settlements for which they maintain an account and perform services at the expense of the U.S. 
Treasury; and 

"Whereas I charge them, jointly and severally, with having concealed the insolvency of the Fed and with 
having failed to report the insolvency of the Fed to the Congress and with having conspired to have the 
said insolvent institutions continue in operation, and with having permitted the said insolvent institutions 
to receive U.S. Government funds and other deposits, and with having permitted them to exercise 
control over the gold reserves of the U.S. and with having permitted them to transfer upward of 
$100,000,000,000 of their debts and losses to the general public and the Government of the U.S., and 
with having permitted foreign debts of the Fed to be paid with the property, the savings, the wages, and 
the salaries of the people of the U.S. and with the farms and the homes of the American people, and 
whereas I charge them with forcing the bad debts of the Fed upon the general public covertly and 
dishonestly and and with taking the general wealth and savings of the people of the U.S. under false 
pretenses, to pay the debts of the Fed to foreigners; and 

"Whereas I charge them, jointly and severally, with violations of the Fed Act and other laws; with 
maladministration of the h evasions of the Fed Law and other laws; and with having unlawfully failed to 
report violations of law on the part of the Fed Banks which, if known, would have caused the Fed Banks 
to lose their charters, and 

"Whereas I charge them, jointly and severally, with failure to protect and maintain the gold reserves and 
the gold stock and gold coinage of the U.S. and with having sold the gold reserves of the U.S to foreign 
Governments, foreign central banks of issue, foreign commercial and private banks, and other foreign 
institutions and individuals at a profit to themselves, and I charge them with having sold gold reserves of 
the U.S. so that between 1924 and 1928 the U.S. gained no gold on net account but suffered a decline in 
its percentage of central gold reserves from the 45.9 percent in 1924 to 37.5 percent in 1928 
notwithstanding the fact that the U.S. had a favorable balance of trade throughout that period, and 

"Whereas I charge them, jointly and severally, with having conspired to concentrate U.S. Government 
securities and thus the national debt of the U.S. in the hands of foreigners and international money 
lenders and with having conspired to transfer to foreigners and international money lenders title to and 



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The Federal Reserve: An Astounding Exposure 1934 Page 22 of 23 



control of the financial resources of the U.S.; and 

"Whereas I charge them, jointly and severally, with having fictitiously paid installments on the national 
debt with Government credit unlawfully taken; and 

"Whereas I charge them, jointly and severally, with the loss of the U.S. Government funds entrusted to 
their care; and 

"Whereas I charge them, jointly and severally, with having destroyed independent banks in the U.S. and 
with having thereby caused losses amounting to billions of dollars to the said banks, and to the general 
public of the U.S., and 

"Whereas I charge them, jointly and severally, with the failure to furnish true reports of the business 
operations and the true conditions of the Fed to the Congress and the people, and having furnished false 
and misleading reports to the congress of the U.S., and 

"Whereas I charge them, jointly and severally, with having published false and misleading propaganda 
intended to deceive the American people and to cause the U.S. to lose its independence; and 

"Whereas I charge them, jointly and severally, with unlawfully allowing Great Britain to share in the 
profits of the Fed at the expense of the Government and the people of the U.S.; and 

"Whereas I charge them, jointly and severally, with having entered into secret agreements and illegal 
transactions with Montague Norman, Governor of the Bank of England; and 

"Whereas I charge them, jointly and severally, with swindling the U.S. Treasury and the people of the 
U.S. in pretending to have received payment from Great Britain of the amount due on the British ware 
debt to the U.S. in December, 1932; and 

"Whereas I charge them, jointly and severally, with having conspired with their foreign principals and 
others to defraud the U.S. Government and to prevent the people of the U.S. from receiving payment of 
the war debts due to the U.S. from foreign nations; and 

"Whereas I charge them, jointly and severally, with having robbed the U.S Government and the people 
of the U.S. by their theft and sale of the gold reserves of the U.S. and other unlawful transactions created 
a deficit in the U.S. Treasury, which has necessitated to a large extent the destruction of our national 
defense and the reduction of the U.S. Army and the U.S. Navy and other branches of the national 
defense; and 

"Whereas I charge them, jointly and severally, of having reduced the U.S. from a first class power to one 
that is dependent, and with having reduced the U.S. from a rich and powerful nation to one that is 
internationally poor; and 

"Whereas I charge them, jointly and severally, with the crime of having treasonable conspired and acted 
against the peace and security of the U.S. and with having treasonable conspired to destroy 
constitutional Government in the U.S. 

"Resolve, That the Committee on the Judiciary is authorized and directed as a whole or by 
subcommittee, to investigate the official conduct of the Fed agents to determine whether, in the opinion 
of the said committee, they have been guilty of any high crime or misdemeanor which in the 



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The Federal Reserve: An Astounding Exposure 1934 Page 23 of 23 



contemplation the Constitution requires the interposition of the Constitutional powers of the House. 
Such Committee shall report its finding to the House, together with such resolution or resolutions of 
impeachment or other recommendations as it deems proper. 

"For the purpose of this resolution the Committee is authorized to sit and act during the present 
Congress at such times and places in the District of Columbia or elsewhere, whether or not the House is 
sitting, has recessed or has adjourned, to hold such clerical, stenographic, and other assistants, to require 
of such witnesses and the production of such books, papers, and documents, to take such testimony, to 
have such printing and binding done, and to make such expenditures as it deems necessary." 

After some discussion and upon the motion of Mr. Byrns, the resolution and charge was referred to the 
Committee on the Judiciary. 

"Attacks on McFadden's Life Reported" 

Commenting on Former Congressman Louis T. McFaddens's "heart-failure sudden-death" on Oct. 3, 
1936, after a "dose" of "intestinal flu," "Pelley's Weekly" of Oct. 14 said: 

Now that this sterling American patriot has made the Passing, it can 
be revealed that not long after his public utterance against the 
encroaching powers of Judah, it became known among his intimates that 
he had suffered two attacks against his life. The first attack came in 
the form of two revolver shots fired at him from ambush as he was 
alighting from a cab in front of one of the Capital hotels. 
Fortunately both shots missed him, the bullets burying themselves in 
the structure of the cab. 

"He became violently ill after partaking of food at a political 
banquet at Washington. His life was only saved from what was 
subsequently announced as a poisoning by the presence of a physician 
friend at the banquet, who at once procured a stomach pump and 
subjected the Congressman to emergency treatment." 

/s/ Robert Edward Edmondson (Publicist-Economist) 



President Andrew Jackson stated in reference to the bankers at the state of his 
administration: 

"You are a den of vipers and thieves. 
I intend to rout you out, and by the Eternal God, I will rout you out. 



HDME 



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